A nation's GDP can be calculated as

Question

Quizplus · Accepted Answer

GDP can be calculated as the total value added at all stages of production, which means the final value of the product minus the cost of intermediate goods. GDP does not include depreciation, which is accounted for separately in measures like net national product (NNP) or gross national product (GNP). Therefore, options C and D are incorrect. Option A is partially correct, but it only accounts for the value added and does not subtract the cost of intermediate goods, resulting in an overestimate of GDP.

A Nation's GDP Can Be Calculated as